Where would you like to sign in?

Arizona Needs to Build on Resources for High-Tech Job Growth When Recovery Comes, According to Milken Institute

LOS ANGELES, CA--(Marketwire - December 15, 2009) - If Arizona wants to remain competitive in
the post-recession economy, it must move quickly to build a healthy,
job-intensive technology sector, according to a new report from the Milken
Institute. The report, "Charting a Course for Arizona's Technology-Based
Economic Development," suggests that strategic planning, virtual and brick
and mortar business incubators, retaining high-tech graduates, and creating
incentives for green technology are all necessary to keep the state
competitive in science and technology sectors.

"The downturn in the economy has definitely hit Arizona's high-tech
industry, but the state needs to be thinking about how it will seize
opportunities for job growth in an upturn," said Kevin Klowden, managing
economist at the Milken Institute and lead author of the report. "Other
states -- including Colorado, Utah, New Mexico and Oregon -- are better
prepared to move forward. Arizona can't afford to be stuck behind the gate
when the race starts."

Arizona has several important resources needed to build a successful
high-tech economy, including three large research universities, several
existing high-tech industries and organizations that promote technology
growth, the report says. However, it adds, the state lags in terms of
"skilled, educated workers; sufficient capital to fund research and
expansion by entrepreneurs; and state-level leadership that is informed and
committed to implementing well-considered, long-range development
strategies."

The analysis stems from the Milken Institute's "State Technology and
Science Index," a comprehensive analysis of state-level assets and
competitiveness in the 21st-century knowledge economy. "Charting a Course
for Arizona's Technology-Based Economic Development" takes a deeper look at
Arizona's comparative strengths and weaknesses, and benchmarks the state
against five competitors in the western U.S. (Colorado, Nevada, New Mexico,
Oregon and Utah), plus four outside the region with similar attributes
(Georgia, Indiana, Minnesota and Virginia).

The report includes recommendations to enhance Arizona's competitiveness:

-- Expand programs -- and make a concerted effort to retain graduates --
in engineering and applied sciences, especially in those fields in high
demand by local employers, while utilizing two-year colleges to train local
workers for entry-level positions. Arizona now ranks last in the nation for
concentration of life and physical scientists, and the greatest threat to
its high-tech future is its inability to develop and retain skilled
technicians. To develop a stronger presence in biotechnology and green
technology, the state needs to place in the top 30 at a minimum.
-- Further develop the technology clusters around the state universities
and improve the ease of technology transfer. Arizona currently ranks among
the bottom 10 states in the nation for the number of business incubators
per 10,000 business establishments. Arizona needs to move into at least the
top 30 to be able to compete with states that are actively fostering
clusters and reaping the rewards of technology transfer for economic
development and job growth.
-- Keep and grow high-tech companies by providing coordinated assistance
for firms at all levels of government and improving access to capital.
Arizona has historically relied on its light regulation, low individual tax
burden and high quality of life to recruit and retain companies. The state
actually ranks 3rd in the country for the number of business starts per
100,000 people. But too many high-tech firms fold or leave the state due to
the lack of local angel investors and venture capital.
-- Implement an incentive-based strategy in green technology, especially
solar energy. Arizona currently ranks 18th in the nation for venture
capital investment in clean tech, lagging far behind many of its peer
states in the West. Offering incentives and rebates to keep clean-tech
manufacturing local will help propel the state into the top 10, which is
where it needs to be to stay competitive.
-- Develop and execute a comprehensive strategic plan led by government,
industry and universities, and guarantee funding over several years to
produce results. Arizona lacks an overall strategy for moving forward with
a robust tech sector. In order for a strategy to take hold, stakeholders in
the governor's office, legislature, regional development agencies, the
business community and Arizona's universities must be able to work together
and do so over the long haul.

The report was sponsored by Science Foundation Arizona and completed with
the cooperation of Arizona State University. The full report and executive
summary are available online at www.milkeninstitute.org.

About the Milken Institute: The Milken Institute is a nonprofit,
independent economic think tank whose mission is to improve the lives and
economic conditions of diverse populations around the world by helping
business and public policy leaders identify and implement innovative ideas
for creating broad-based prosperity. It is based in Santa Monica, Calif.
(www.milkeninstitute.org)